Here I am going to explain the process as how we can change Item dimension group for an Item which already has some transactions. (We can remove or add only these Storage dimension- Batch number, Serial number, Pallet ID and Location dimension )

Prepare a list of Items which needs a change for Dimension group (Say Dim1).

Create a new Item Dimensions groups (say Dim2) same as Dim1. But for Storage diemensions which are going to be removed needs to have Blank Receipts allowed and Blank Issues allowed check boxes selected.

Replace Dim1 with Dim2 for required Items in Item form, General tab.

Create a new Counting Journal

Click lines and enter the items.

If you are changing Dimension group for many Items at a time then click Create button in this form and select Items or On-hand option as per your requirement.

Enter ‘0’ in Counted field for the Item lines in the counting journal (you can also create Movement journal with Negative quantity for required Items and post the Journal)

post the journal. Now we have Zeroed or nullified inventory for these items. (We have removed Inventory for these items)

Now change Dimension group for these required Items to a new dimension group as per your requirement (Say Dim3).

Now post a Movement journal with Positive quantity with required dimensions selected in Dim3.

If you have mentioned Cost price in Item master or Costing version the same will be in force when you get back the inventory.

The process which had been explained in my blog suits well for Inventory model group of “Standard cost price”.
For other model groups we need to take necessary steps as required depending on the situation with respect to cost price. For better results (for other inventory model groups other than Standard cost price) I recommend to perform Inventory recalculation before changing Dimension group (Say Dim1 to Dim 2) and posting Counting journal. We will get cost price for that items and the same should be entered during inwards of all inventories.
This way we can avoid your mentioned issue.

Hi, I tried your process (for an item with FIFO). When trying to change the dimension group I got an error message say something like “You can not assign the new dimension to the group. Other economic dimensions are used and there may be physical inventory transactions and / or financial inventory transactions that are not completely settled.” Any ideas?

Update all the items shown in the log financially by posting SO or PO invoice. Make sure that there are no transactions exits for this item like Inventory journal, PO or SO. close or post all and try again.
update your results

Hi Ramba,
Tried to do this (FIFO Item, on-hand for all dimensions 0) , but there are financial cost on different warehouses (lets say WH1 fin cost = 100, and WH2 fin cost = -100).
What I would like is to make disappear all the financial costs as the item has 0 units on hand, and additionally there is no financial cost.
I cannot change the dimension group because this error: “The new dimension group cannot be assigned. Physical stock transactions might exist and/or financial stock transactions are not fully settled, while ‘Activate closing of non-financial transfers’ is set to Yes.”
Any idea on how to remove the “residual” financial cost in the warehouse dimensions?.
Currently, my dimension groups only have financial value at site level but not at warehouse.
Thanks in advance.

Request to perform recalculation first for that particular item and then try to change the dimension group. If still problem exists then request to add quantity for that particular item though Inventory Journals and perform Inventory adjustment of cost for that item and try to change the dimension group.

as per my idea this should solve your issue. if not then we need to handle this through technical end.